Lavish fountains in the City Creek Center mall, built by the Mormon church.
Most religions exhort their members to take care of their eternal souls; the unusual thing about Mormonism is that it also urges its members to profit in more earthly ways, too. A lengthy article in Bloomberg Businessweek unpicks the business dealings of the Church of Latter-Day Saints, showing how the faith’s emphasis on profitable enterprise has spawned a sprawling, multi billion-dollar business empire.
‘We look to not only the spiritual but also the temporal, and we believe that a person who is impoverished temporally cannot blossom spiritually,’ Keith B McMullin, CEO of the Mormon church’s holding company, tells Businessweek’s Caroline Winter.
And when members flourish in the temporal realm, this helps the church to prosper, too: congregations are expected to pay 10% of their income in tithes into the central coffers – adding up to an estimated $8bn (£5.1bn) a year. The church as a whole is worth an estimated $40bn. But a recent report estimated that the church gives just 0.7% of its income to charitable causes; what becomes of the rest is not entirely clear, even to members.
Enterprise is in Mormonism’s DNA, Winter says: the church’s original prophet, Joseph Smith, had 112 revelations, 88 of which relate directly to financial matters. This makes him perhaps the world’s first genuine business guru. Next month, former Mormon bishop – and multi-millionaire businessman – Mitt Romney will receive the Republican presidential nomination, which will place the church’s dealings under scrutiny as never before.
Businessweek traces the church’s sprawling business empire, which takes in for-profit ventures as varied as agricultural holdings in Britain, Brazil, Argentina, Mexico, and Australia, a sewage system, a university, a publishing company, a TV station and 11 radio stations, vast property holdings, and two cemeteries. The church is currently spearheading a $5bn regeneration of Salt Lake City, Utah.
The Mormons also run a number of non-profit organisations, including, bizarrely, a Polynesian cultural centre in Hawaii and a university.
And as a religious organisation, the church can claim tax breaks – for example, it is often exempt from paying tax on properties it leases out, even when the properties are rented to commercial businesses. Winter quotes a Reuters report that Romney and other senior staff at Bain Capital donated millions of dollars worth of stock, including holdings in Burger King and Pizza Hut, which the church would then have been able to sell on without paying capital gains tax.
The business holdings are run by senior Mormons, and like individual members the businesses pay 10% of their income in tithes. McMullin tells Winter that occasionally the businesses can turn to the church as a source of cash. He says this rarely happens, but gives ‘recession’ as an example of a time when the church’s for-profit enterprises might receive such support.
The Mormon church is far from alone in opaque business holdings: the Catholic church is far from open about its fortunes. Those who run the church’s businesses insist that they have a mission beyond generating profit, and that they turn to Mormon principles for their business decision-making. But as Winter points out, the lack of transparency surrounding the relationship between Mormonism’s business arms and the central church funds is problematic, even for some Mormons.
‘McMullin insists that not one penny of tithing goes to the church’s for-profit endeavors, but it’s impossible for church members to know for sure,’ Winter writes.
In March, the church completed the City Creek Center, a $2bn mega-mall in Salt Lake City, a structure with over 100 shops, a retractable roof and elaborate fountains. Facing the Mormon church’s main temple, and linked by walkways to the church’s headquarters, it is a near-perfect illustration of the religion’s comfortable relationship between faith and commerce.
Click here to read How the Mormons make money, in Bloomberg Businessweek
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July 20th, 2012 at 5:07 pm (#)
You call this investigative journalism?
I’ve been teaching and practicing journalism for more than 20 years including teaching investigative journalism courses. Simply rewriting someone else’s work and slapping on a byline looks a lot more like plagiarism than investigative journalism. Investigative journalists don’t just regurgitate what someone else has printed and take it for the truth. Since it was published, there has been plenty of responses from both inside and outside The Church of Jesus Christ of Latter-day Saints about the failings and holes in the Business Week article and the journalistic ethics of the cover.
Yes, I am a Mormon and a journalist. That doesn’t mean I believe the church’s finances should be off-limits, but good investigative journalism requires a bit more digging and contextualizing than BusinessWeek apparently had time for. Journalism is about INDEPENDENT review and reporting. It’s too bad that The Bureau of “Investigative Journalism” doesn’t live up to its name
If you are interested in understanding this story and how to dig for real information and documents, I am happy to give you some pointers.
Joel Campbell
Associate Professor
Journalism — Department of Communications
Brigham Young University
Former reporter and editor
National FOIA newsroom trainer
Former Freedom of Information Committee Chair- national Society of Professional Journalists
801-362-4298
foiguy@gmail.com
Editor’s note: Thank you for your comments. This article appeared under our ‘Bureau Recommends’ section, where we seek out an interesting piece of work and summarise it.
July 20th, 2012 at 5:13 pm (#)
Is this incomplete report of another incomplete report what passes for investigative journalism in Britain? Well, it’s just a matter of religion, so who cares if it is professional, eh?
July 20th, 2012 at 10:13 pm (#)
In the year 2007 alone, The Church of Jesus Christ of Latter-day Saints responded to major earthquakes in 5 countries, massive fires in 6 countries, hunger and famine in 18 countries, and flooding and severe storms in 34 countries. In total the Church and its members responded to 170 major events — nearly one every two days for the entire year. The motivation behind this vast global work centers on the simple charge given by Jesus so many years ago to “love thy neighbor as thyself.”
The Church of Jesus Christ of Latter-day Saints conducts humanitarian activities worldwide. From 1985 to 2009 Humanitarian Services provided more than $1.2 billion in total assistance to needy individuals in 178 countries and territories. This church has 16 million members world-wide and five million in the United States. They were first at Katrina and brought food, clothing, and their hard backs and arms to help there.
In 1996 the Church organized Latter-day Saint Charities as a non-governmental organization to facilitate humanitarian activities in selected countries.
The Church of Jesus Christ of Latter-day Saints provides relief and development projects for humanitarian purposes in countries all over the world. Projects operate without regard to the nationality or religion of the recipients.
* Humanitarian service may include emergency response to natural disasters, such as an earthquake or a tsunami, or man-made disasters, such as the effects of war and famine. It may also be part of a longer-term effort to meet serious and more entrenched human needs, such as the need to alleviate disease.
* Within hours of a disaster, the Church works with local government officials to determine what supplies and food are needed. Materials are then immediately sent to the area.
* After urgent needs are met, the Church looks for additional ways to help with the long-term needs of the community. The Church’s approach is to help people become self-reliant by teaching skills and providing resources for a self-sustained life.
* Donations, principally from Church members but also from people around the world, are used to make relief projects possible. One hundred percent of the donations given to the Church’s humanitarian services are used for relief efforts. The Church absorbs its own overhead costs.
* The humanitarian services arm of the Church sponsors five ongoing global projects to help people become more self-reliant. Initiatives include neonatal resuscitation training, clean water projects, wheelchair distribution, vision treatment and measles vaccinations.
7.5 million people now have access to clean water because of the Church’s humanitarian efforts throughout the world over the past 10 years?
550,000 people have benefited from the Church’s vision projects?
415,000 have received wheelchairs or other mobility devices?
The people of 58 countries received relief supplies after 119 disasters in 2010 alone?
The list goes on. Millions of Mormons make donations and volunteer their service to bring about such efforts.
Below are recent examples of Latter-day Saint involvement throughout the world.
Church Expands Donations to Japan (11/16/11)
Update on Church Response to Thailand Flooding (11/15/11)
Church Aids Thailand as Monsoon Flooding Displaces Millions (10/27/11)
Church Partnering to Help East Africa Drought Victims (10/26/11)
Back-to-Back Typhoons Hit Philippines, Church Helps With Life-Sustaining Supplies (10/7/11)
Mormons in the Northwest United States and Canada Pitch In to Help Communities (9/22/11)
Mormon Helping Hands Clean and Comfort (9/21/11)
Mormon Helping Hands Paint, Garden and Clean in the UK (9/9/11)
Hurricane Irene Cleanup Update (9/9/11)
Africa Mormon Helping Hands Celebrate Five Years by Volunteering (8/31/11)
Mormons and Provo United Church of Christ Join to Spruce Up Century-Old Chapel (8/29/11)
Mormon Helping Hands Find Joy in Beautifying Brazil (8/5/11)
Mormon Volunteers From Winnipeg Sacrifice to Repair Flood-Damaged Homes (7/29/11)
Mormon Helping Hands Pitch In to Aid Neighbors in Tornado-Ravaged Southern U.S. (5/6/11)
Thousands of Mormon Volunteers Lend a Hand in California and Hawaii (5/3/2011)
Latter-day Saints Help With Cleanup After Tornadoes Hit Southern United States (4/18/11)
Day of Service in South Florida (4/13/2011)
July 20th, 2012 at 11:48 pm (#)
It’s my understanding that all stock that is given to the church is sold by the business arm of the church, which DOES pay taxes. This is also the part of the church that built the Mall in Salt Lake.
July 21st, 2012 at 5:07 am (#)
It was a fine article, but one very inaccurate point, which was first reported in the Bloomberg article and then has spread to articles like this one.
That 0.7% to charitable causes only include a specific type of charitable contributions, essentially donations to external charities. However, the LDS church is a charity organization, and most of the charitable donations and service are performed in-house. To claim that only 0.7% of finances go to charity would be like criticizing the Red Cross for not donating more to charity.
Editor’s note: Thank you for pointing that out.
July 23rd, 2012 at 10:10 pm (#)
One point that the press fails to mention in many cases is that the LDS assets are predominantly houses of worship. These are not only paid for in cash when built, but the upkeep and utility costs are a constant drain. When the church is criticized for the income it has, why not remember that there are also legitimate expenses? There are no mortgaged assets in the LDS Church, which says a lot for their independence and thrift.
July 25th, 2012 at 2:49 am (#)
As former British Military Officer with some experience in ‘Hearts & Minds’ work, followed by civilian training and fifteeen years work as an (experienced ‘information gatherer’) Investigative Journalist, now a Police Service Forensic Psychologist. I was, in specific relation to this article, a Mormon (Latter-Day Saint) and having been a member in good standing for a rather long time, having been raised as a Mormon, as an adult a member in good standing, attended regularly, Priesthood holder, including paying my tithes (>10%)diligently I have to add clarity the comments posted previously in resprect to SOME of the good the Mormon Church does.
However, it is very important to understand there are many other organisations that aid in similar ways to far greater degrees and in more lasting ways effecting greater change and doing far more good. Having been an insider, observed firsthand the Mormons work, i.e. doing a ‘little’, I feel it neccessary to make more of the truth be transparent and clearly understood.
It is my ‘Mormon insider’ observed, educated, and professional opinion that the vast majority of their followers are all devoted to the point of what many would call ‘Brain washed’. I clearly recognise the Hearts and Minds tactics, the sales/persuasion techniques and behavioural conditioning that ‘The Church of ‘Jesus Christ’ of Latter-Day Saints’ employs in herding its flock. These techniques include such anchoring techniques as declared association and voicing of religious ‘faith’, signed commitments, very public expressions both internally and externally of the churches sole divinity, manipulation of given ‘commitments’ by authorities (local and general) and mass persuasion and reinforcement practices. It is not difficult to appreciate that these techniques are used by politicians, successful sales people, dictators, psychopaths, sociopaths, and generally manipulative people. Absolute faith from LDS in the Presidency of their church as what they claim is ‘devine inspiration’ is required and failure to be so persuaded is openly declared as being under the influence of Satan, Lucifer, Son of the Morning Star, etc, and at risk of being tricked and losing ‘fellowship’ of the church… partially outcast.
As always, in every organisation be it religious, political, social, or otherwise, there are those who rule and those who blindly follow, in fact ‘blind faith is highly desired amongs its members as they are following Christs commands and will receive great reward for their diligence. What more perfect mindset can any organisation desire than obedience with the blind faith of sacrifice… just like the many principlles of Islamic fundamentalists (that is to say those that are truly religiously motivated!), it is a perfect passively-manipulative system where the ‘followers’ obey and self-regulate their behaviour to those instructions of the churches authorities. It too is organised into ‘cells’ (commonly called Stakes or for the less evolved areas’ Districts’ who seek to become the more praised Stakes) where the levels of access are controlled (the Lords choisen people need to be in a state of order after all!)and although open access is declared very little is seen. All the work the sheep of the flock do is required to be voluntary… an easily maintained payroll from a devine beings blessings list. If ‘He’ decides it’s what the individual needs at that time… He always has a plan and we do not understand it, He loves us after all, so we are safe so long as we suffer what comes in silence and if we do it with gratitude we get interest too!
The Mormon Church is a ‘Bottomless Pit’ of wealth with around twelve million members worldwide, a significantly dominant minority group of extremely wealthy members (including church authorities) and a ‘host’ of poorly educated, easily swayed, minions. Of course the meek and poor shall inherit the earth being the predominant platitude together with “…if you are faithful the Lord will bless you with what he knows you really need… just be faithful and He will bless you. He loves you and we love you too”. This is reinforced with weekly visits from Missionaries/Elders and Home Teachers if a problem is discerned and reduced to monthly visits if not. As an insider of some position I actually saw very little help given to the actual members in my area, all controlled by the devine inspiration of opinionated and brainwashed Stake Presidents, Bishops, and others who needed to rule with strictness and love (does that make you think of a wife batterer?). The ‘flock’ is in need of herding!
The payment of tithes is required for progression to enter the Temple (something I entered too!) as well as righteous behaviour i.e. doing what your told/your dutues to obey the Lords Priesthood Authorities/Church here on earth. Such carrots are dangled in public every Sunday to the herded flock and professed as essential for Celestial Progression for each member. Every first Sunday in the month is ‘Fasting Testimony’ where members are expected (if safe) to refrain from eating and donate the funds for thise respective meals to the Church as well as many other categories of donations including church and temple building, book printing, missionary work, etc. The members are required (of their ‘free will’) to stand up and declare their devoted faith in the Lord and the Churches Authorities, how they think they’ve been blessed or will be blessed in the hopefully near future, etc. This technique of public declaration makes it very difficult for the resepctive member to change their mind about the chusrch and so ignore selectively what they now don’t see as very wrong. The manipulation of Cognitive Dissonance is a very common practice amongst cults and fanatical organisations around the world.
The overall and not widely disseminated outside the LDS church is this goal:
We all want to become Gods (literally!) don’t we?
That is the BIG carrot of the Mormon church… Godhood! If the member behaves, does exacly what is written for them to do, stay righteous and faithful, and serve without reward,they can enter the Celestial Kingdom (as opposed to the Terrestrial and Telestial Kingdoms for we lesser beings) and be ordained as Gods, Priesthood included, to create world without number and live in Glory to be a God of other worlds… and so the cycle continues.
The point of this very short expose is to illustrate the methods that the Mormons employ to harvest money and free services from even the poorest LDS member. The fact that the Mormons are nice to your face, because they are nice people at the lower levels (after all you can’t make new converts/money by being nasty can you?) does not hide or change the fact that the local and general authorities are phenominally wealthy, extremely powerful (never underestimate the strength of declared ‘devine inspiration’ from the leaders amongt the multitude of blind believers)and quite manipulative.
If these were general employers they would be prosecuted for their behaviour, employee manipulation, emotional, psychological and religious manipulation and abuse,to state a few of the many abuses of this and similar ‘businesses’.
Respecting the claimed events where the Mormons acted to help… this is true, however all but the most local and self-agrandising actions (Malls in Salt Lake City, etc) were only offering a little help to the already established Charities and Rescue Organisations already operating. Do not be fooled into thinking that the LDS does it all by themselves… they don’t by any means. An insiders observations tell you that they add next to nothing in relation to other organisations.
The Moromons practice Public Tokenism.. after all if you care to look at every Mormon Temple on the highest spire there is statue of the Angel Moroni Blowing his own Trumpet!
A disillusioned and clear sighted free thinking former insider.
July 29th, 2012 at 4:54 pm (#)
With Regard to the comments about Moroni blowing his own trumpet, it is not actually his own trumpet but a message from the Lord to all of us, to take heed of his message.
This statue is on most of the Temples as you can see if you take a look at my video: http://www.youtube.com/watch?v=1D2uMVGEEvk&feature=plcp
The video shows 150 Temple buildings – 12 currently being under construction and shown as artists’ impressions. Captions have been added to the video for the second piece of music by the Mormon Tabernacle Choir, to let us enjoy the beautiful words as they are sung.
This was presented by the Choir in 2008 at an Easter performance of “The Redeemer”. It is appropriate here, as all mankind is dependent upon Jesus Christ and the Temple and we are engaged in bringing that forward as the servants of the Lord. The final piece “Amazing Grace” reminds us of our position and dependence upon the Lord. The use of bagpipes gives a haunting atmosphere and particularly towards the end where the bagpipes return and you hear the drums, it seems to illustrate our eventual (hoped for) triumph and success. The final scene speaks for itself – and shows the Christus Statue with an astronomical scene behind.
Sorry this in not really about the original article, but I thought everyone could do with a lift following the previous poster.
July 30th, 2012 at 6:32 am (#)
What Mormon commenters either don’t know, or prefer to hide is that the $1.3billion in humanitarian aid is the amount over 25 years, and less than a third of that amount is cash payments. The rest is a nebulous non-cash figure that is not explained, and is likely to be largely an accounting fiction.
Furthermore 100% of the Humanitarian Aid payments actually come from the Humanitarian Aid fund, a charity supported by individual church members, NOT the church. So the “church” (meaning the Corporation of the President and its subsidiaries) do not donate ANY money at all out of their annual billions of excess dollars. Which is inexcusable when you consider that they demand even the poor and destitute to pay 10% of their income even if their children go hungry and unclothed.
July 31st, 2012 at 3:11 pm (#)
To balance the view above:
The idea of sacrifice has been around for a long time.
Abraham paid tithes to Melchisedek – Hebrews 7:1-4.
Tithing is an ancient requirement – Malachi 3:7-12 – an example of a commandment with a blessing for those who are obedient.
More recently – the widow’s mites – Luke 21:1-4
So it looks like tithing was not invented by the Mormon Church after all and it makes no demands either. The invitation is open to all to obey the commandments. For any who are in financial difficulties the Bishops of the church are required to provide assistance with their finances. No children go hungry and unclothed.
I have been involved in this process and so do not need to make any guesses regarding what actually happens.
As members we are requested to “love our neighbours as ourselves”, therefore there is no limit on how much we should help all those who are in need.
August 7th, 2012 at 3:06 am (#)
In clarification, I hold several doctorates and work as a Police Forensic Psychologist.